Bargaining is a process of reaching a mutually acceptable solution among all parties of the conflict at the end of the negotiation process. bargaining strategies helps to resolve the conflict by proper communication and understanding of the situation.
There are two general approaches to negotiation are distributive bargaining and integrative bargaining.
Distributive Bargaining Strategy
Distributive bargaining is defined as negotiations that seeks to divide up a fixed amount of resources, a win lose situation.
Its most identifying feature is that it operates under zero sum conditions i.e. each party bargains aggressively and treats the other as an opponent who must be defeated. The core of distributive bargaining is that each party has a target point and resistance point. Target point is what the parties would like to achieve most.
Each parties target point is most of the time are entirely or extremely opposite. Resistance point is the minimum result which would be accepted by the parties.
The difference between these two points is the each one’s aspiration range. As long as there is some overlap between the aspiration ranges, there exist a settlement range in which each one’s aspiration can be meet.
When engaged in distributive bargaining one’s tactics are focus on trying to get one’s opponent to agree to one’s specific target point or to get as close to it as possible.
Examples of such tactics are persuading to his/her target point and the advisability of accepting a settlement near yours arguing that your target is fair, which your opponent’s is not and attempting to get you opponent to feel emotionally generous toward you and thus accept an outcome close to your target point.
Integrative Bargaining Strategy
Negotiation that seeks one or more settlements than create win-win situation is called Integrative Bargaining Strategy.
In terms of intra-organizational behavior all things being equal integrative bargaining is preferable to distributive bargaining. Integrative bargaining builds long-term relationships and facilitates working together in the future.
It bonds negotiators and allows each to leave the bargaining table feeling that he/she has achieved a victory. Distributive bargaining however, leaves one party a loser.
It tends to build animosities and deeper divisions when people have to work together on an ongoing process.